Alkermes ( ALKS -0.32% ) reported its third-quarter results on Wednesday. Double-digit sales growth of the company's propriety products helped drive an outsized gain on the bottom line.
Alkermes' third-quarter results: The raw numbers
|Metric||Q3 2018||Q3 2017||Change (YOY)|
|Revenue||$248.7 million||$217.4 million||14%|
|GAAP net income||($34.4 million)||($36.3 million)||N/A|
|Non-GAAP net income||$11.6 million||$4.2 million||176%|
|Non-GAAP earnings per share||$0.07||$0.03||133%|
What happened with Alkermes this quarter?
- Sales of opioid and alcohol-dependence drug Vivitrol rose 15% to $79.9 million.
- Sales of schizophrenia drug Aristada increased 48% to $36.1 million. The boost was partially attributable to the recent launch of Aristada Intio, which is a drug that helps people get started with Aristada.
- Total manufacturing and royalty revenue across key product lines dropped 3% to $97.5 million.
- Research and development revenue -- the bulk of which is attributable to its partnership deal with Biogen ( BIIB -2.01% ) -- was $16.3 million.
- GAAP operating expenses increased 11% to $286 million.
What management had to say
CFO James Frates commented on what drove the company's growth:
Our solid results in the quarter were in-line with expectations, driven by the growth of our proprietary commercial products, the continued strength of our royalty and manufacturing business, and the important investments we are making in our late-stage pipeline and commercial organization. Our diverse business is financially strong and we are well positioned to execute on our strategy to drive value and long-term growth.
CEO Richard Pops also updated investors on the company's pipelines and upcoming milestones:
Against the backdrop of the highly anticipated upcoming regulatory interactions for ALKS 5461 for the adjunctive treatment of major depressive disorder and the ALKS 3831 ENLIGHTEN-2 pivotal study data in schizophrenia, we continue to make important progress across our other pipeline assets. BIIB098 for multiple sclerosis is on track for NDA submission by year-end, and ALKS 4230, our immuno-oncology program, is gaining momentum, highlighted by the recent initiation of combination therapy evaluation.
The continued progress allowed management to favorably increase its guidance for the full-year 2018:
- Revenue is expected to land between $1.015 billion to $1.045 billion. This is a small increase from its previous call for total revenue of about $1 billion.
- On a GAAP basis, the net loss is expected to land between $180 million and $210 million, or $1.16 to $1.35 per share. This is down from its prior call for a loss of $1.35 to $1.55 per share.
- Non-GAAP net income is expected to land between $20 million and $50 million, or $0.12 to $0.31. This is also an improvement from its prior call for a non-GAAP EPS between a $0.06 loss and $0.13 gain.
As usual, CEO Richard Pops ended his remarks by reaffirming his optimism about the long-term potential of the company:
Our results this quarter demonstrate the strong and resilient company we have carefully built over the years, with important medicines driving an expected top line in excess of $1 billion and a diverse development portfolio of late-stage product candidates, each with the potential to impact the practice of medicine and change the growth trajectory of the company. As we head into the fourth quarter, the business is well positioned for growth and the opportunities ahead.